Question

Discussion

As a fraud expert asked to investigate possible fraud at a local nonprofit organization, you suspect that one of the workers, Stacey, has been embezzling money. After securing enough evidence to be very confident of Stacey's guilt, you speak with the president of the organization, Jamie. Jamie assures you that Stacey could be doing nothing wrong, that she has known Stacey for years, and that Stacey is a good person. Further, she indicates that because of her relationship with Stacey, even if something were going wrong, no action would be taken with respect to the potential fraud.

How do you respond to Jamie?

How do you explain to her what is at stake?

Answer 1

I would tell Jamie that majority of the fraud perpetrators does not have a history of deceit and dishonesty; or punished by a previous employer. The deceit and dishonesty can occur in a number of ways and can be done by most trusted and long serving employees also. Even the most reliable employees can cause a loss to business. The dishonest are typically those who are in a position of trust and hold an access to assets susceptible to a risk of fraud. If Jamie takes no action she is putting in jeopardy the culture of the organization. Besides financial damage, fraud can also damage the reputation of company and it's relationships with customers and other business partners. It may also negatively impact the morale of the employee.